AS&E Reaches Deal To Be Acquired for $37 Per Share In Cash By OSI Systems

American Science and Engineering, Inc. ASEI disclosed Tuesday that it reached a definitive agreement to be acquired by OSI Systems, Inc. OSIS for $37.00 per share in an all-cash transaction. The deal involves a total transaction value of approximately $269 million. The transaction is expected to be completed before the end of the current year.

According to American Science and Engineering, the transaction consideration represented a premium of about 25% based on the volume-weighted average closing stock price for the 90 days up to and including June 20, 2016. The company noted the transaction is the final strategic review process in which it reviewed a range of options to maximize shareholder value.

The company's President and CEO, Chuck Dougherty, commented, "We are pleased to have reached this agreement with OSI Systems, which provides our shareholders with a compelling cash value and follows a thorough review of strategic alternatives for the Company. After a careful assessment of conditions in our markets worldwide, the Board determined that entering into this transaction was in the best interest of our shareholders."

He continued, "The combination of AS&E and OSI Systems will create a leader in Cargo and Aviation security screening platforms, offering customers and business partners a complete range of scanning solutions to meet their evolving security and operational requirements. Additionally, the collective scale, technology capabilities, and mutual channel strengths of the combined businesses will enable the Company to provide customers and business partners with an enhanced set of competitive products and services."

Similarly, OSI Systems' Chairman and CEO, Deepak Chopra, reacted to say, "AS&E's backscatter X-ray technology has long been a leader within the security industry, and its cutting-edge products, extensive service network, and premier customer base are highly complementary to our current operations. We look forward to welcoming AS&E's talented team to OSI Systems and we expect to maintain AS&E's current operations in Billerica, MA as an essential part of an expanded security scanning business unit."

In the pre-market trading on Tuesday, ASEI traded 12.15 percent higher.